why is gold so high? insecurity of investors

Post #333,826 by boxley 10/7/10 7:15:26 PM Reply	why is gold so high? insecurity of investors why are they insecure? unsettled political landscape in the US market due to greatly increased costs of potential regulation and higher taxes to get the deficit down. How about a prediction? If the repos gain enough to cause gridlock in DC (cant get enough votes to overturn vetos and the president wields his veto pen) gold will drop to about $890 per oz and the markets start a slight stability path upward. then sales will follow Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free American and do not reflect the opinions of any person or company that I have had professional relations with in the past 55 years. meep
Post #333,829 by Another Scott 10/7/10 7:44:26 PM 10/7/10 7:48:41 PM Reply	That's a different topic. Gold's inflation-adjusted price would have to be above $2200 in current dollars to match the 1980 high. Instead, it closed below $1335 today. If you think the current-dollar price of gold is a meaningful commentary on uncertainty about US taxes, or something, I guess you think this chart says something about Bush's policies: http://stockcharts.c...djiagold1980s.png (Notice the log y-axis) The trend under Bush was for the price to roughly double in roughly 5 years. There's noise in the graph, but that trend is holding. That means that fear of taxes or uncertainty or regulation or SOCIALISM!!!!11 isn't an explanation unless you think that the gold market thought W had those policies too. Tell me what the price of [gold] means in relation to Beep's argument? [Noting that your interpretation of the reason for the price rise doesn't seem to hold.] Thanks. (You're free to make any prediction you want. I won't put any money on it. :-) Cheers, Scott. Edited by Another Scott Oct. 7, 2010, 07:48:41 PM EDT Expand All History
Post #333,839 by Andrew Grygus 10/7/10 8:54:18 PM Reply	Those who are flogging gold . . . . . are working very hard to build insecurity. All the Right Wingnut literature is flooded with panic generating FUD (and invocation of Gold as the cure). As soon as the floggers are having trouble pushing it higher (I expect fairly soon) they will be sold out and turn off the pumps. Prices will plunge. When gold hits a serious low, and conditions look right, the floggers will buy it all back "at above market value" from the suckers they sold to, and start the hype pumps again.

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